In the second week of March 2021 bond trading on the LuSE there was very little trading activity throughout the week. Even with only one day recording trades on the bond market it completely eclipsed the equities market recording a score of 100% on the bond market. This is a complete replica of week two of March 2020.
Although, the equities market underperforming we see certain securities record positive earnings for instance Zambian Breweries as well as Airtel Zambia amongst other company securities’. Following a strong start to the year, the overall results in 2020 were significantly impacted by the disruption caused by the COVID-19 pandemic. Zambian Breweries was humbled to report that despite the challenges of the past year, they have reported an increase of 10% in net revenue for the year to December 31, 2020, compared with the same period of last year.
Airtel Board Chairperson Ms Katebe Monica Musonda announced the results in Lusaka saying there has been an increase in the operating profit at ZMW 719 million for the period under review, which has gone up by 7.4% compared to the same period last year. She said this is mainly as a result of the strong performance on revenue, and management’s consistent optimization of operating expenses in view of the harsh economic environment.
Equity Market
In the week ended 12th March 2021, a total of 145,974 shares were transacted in 32 trades yielding a market turnover of K520,965.Trading activity was recorded in CEC ZAMBIA, STANDARD CHARTERED ZAMBIA, ZAMBIA METAL FABRICATORS, ZAMBIA FORESTRY and FOREST CORPORATION, INVESTRUST and PUMA. The Index (LASI) closed at 3,949.04 points. The market closed on a capitalization of K57,513,619,384 including Shoprite Holdings and K23,279,848,199 excluding Shoprite Holdings.
Bond Market
Bonds of total face value of K600,000,000 were transacted in 2 trades, yielding a market value sales of K253,260,000.
Week two outperformed the first week of Marchs’ bond trading.
Important announcements
In an extremely challenging year, our teams rose to the occasion. The past year presented extraordinary circumstances for our business, colleagues and communities. This year we all had to come together to ought and survive a global pandemic; among many other challenges we also faced internally, especially with our local economy and capacity constraints.
The Board wishes to inform the shareholders and the market that ZCCM-IH, with its advisors, has prepared the technical and financial information which is required in the Circular to ZCCM-IH shareholders (“Shareholders”) to ensure Shareholders have sufficient information to vote on the Transaction at an Extraordinary General Meeting. The Transaction presents a significant opportunity for ZCCM-IH and will transform the Company from an investment holding company into a world-class copper and cobalt mining company that will have the ability to create substantial value for its shareholders today and well into the future. In line with the requirements of Section 9 of the Lusaka Securities Exchange (“LuSE”) Listings Requirements, the salient features of the Transaction are as follows.
Airtel Networks Zambia Plc has released its full year results for the year ended 31 December 2020 and disclosed revenue growth of 20.6% from ZMW 2, 154 million (as at 31 December 2019) to ZMW 2,598 million as at 31 December 2020. The above performance is largely attributed to the increase in the customer base by 16% from 5.836 million at 31 December 2019 to 6.771 million as at 31 December 2020.
COPPERBELT ENERGY CORPORATION PLC (“CEC”)
In accordance with Section 3.4(b) of the Lusaka Securities Exchange Listings Requirements (“LuSE Listings Requirements”), the Board of Directors of Copperbelt Energy Corporation Plc (“CEC” or “the Company”) wishes to inform shareholders and the market that following the Minister of Energy’s declaration of CEC’s transmission and distribution lines as common carrier through the promulgation of SI No. 57 of 2020 dated 29th May 2020, and the subsequent decision of the Energy Regulation Board of 31st May 2020, directing a wheeling tariff equivalent to 30% of CEC’s standard network tariff, the Company took the decision to commence a claim for Judicial Review in the High Court under cause no. 2020/HP/0575 (The People vs Attornery General and the Energy Regulation Board, Re: Expartes Copperbelt Energy Corporation Plc).
ZAMBIA NATIONAL COMMERCIAL BANK PLC
The Group’s performance continued on a strong growth trajectory. Total operating income increased by 54% from K1,543 million in 2019 to K2,373 million in 2020 primarily due to increase in trading income and interest income from loans and advances. Trading income grew by 133% compared to prior year on account of increased volumes of transactions as well as an improved product mix oering. Interest income from loans and advances increased by 53% from 2019. This is reective of the growth in the loan book which grew by 52% from K4,817 million in 2019 to K7,328 million in 2020. Operational costs were adversely impacted by the depreciation of the kwacha and inationary changes which resulted in an increase of 33% compared to prior year. The Group continued to invest in its strategic initiatives which saw an increase in transformation costs from K52 million in the prior year to K209 million.